One troubling flaw in the 2017 TCJA tax reform was the provision that deemed unrealized overseas profits as income and imposed taxes on these unrealized profits. In a painful irony this Republican design could set the precedent to allow progressive Democrats to impose a wealth tax on the unrealized increases in value of investments and assets. But in the meantime it also saddled Charles and Kathleen Moore with an unjust tax bill for unrealized overseas profits, and the Supreme Court has agreed to hear their case. But might a conservative Supreme Court allow this unjust tax to remain in place because that’s how Congress wrote the law? With IPI President Tom Giovanetti and Resident Scholar Dr. Merrill Matthews.
In a pursuit to close the “tax gap”—the alleged tax revenue the federal government thinks it’s missing out on – the IRS has several times floated the idea that the IRS would calculate your taxes and then send you a tax form with the fields and amounts already filled out. This is a terrible idea because the IRS could be relied upon to calculate your tax liability in the way most favorable to them, not to you. IPI President Tom Giovanetti explains that our system of voluntary tax compliance, where the burden of proof lies with the IRS to challenge your tax calculations, is worth preserving. So when the IRS says it wants to make tax compliance easier, the solution is a simpler tax code, not IRS intimidation. With IPI Resident Schlar Dr. Merrill Matthews.
Special Guest Annie Spilman, Texas State Director for the National Federation of Independent Business (NFIB), shares with us NFIB’s policy priorities for the 2023 Texas Legislative Session. Annie points out the harm of the “inventory tax” (personal business property tax), the gross receipts tax, and the problem of health care costs for small businesses. With IPI President Tom Giovanetti and Resident Scholar Dr. Merrill Matthews.
A tempest in a teapot has erupted about Republicans wanting to slap a 30% “national sales tax” on American consumers. IPI was there at the beginning of the national sales tax proposal, so we give a history of the national sales tax, talk about its strengths and weakness, give credit where credit is due, and then suggest that it’s a politically untenable proposal and can only result in a self-inflicted wound on House Republicans. With IPI Resident Scholar Dr. Merrill Matthews and IPI President Tom Giovanetti.
IPI President Tom Giovanetti and Resident Scholar Dr. Merrill Matthews explain why inflation can result in taxes paid on false gains because capital gains tax rates and other taxes on assets are not indexed for inflation, and that income tax brackets in many states are also not indexed for inflation.
When a politician talks about “cutting taxes,” what does she mean? Usually, she means reducing marginal tax rates, but what are those? And what’s the difference between marginal tax rates, effective tax rates, average tax rates, and tax revenue? Does raising marginal tax rates automatically raise tax revenues? IPI President Tom Giovanetti explains, with the able assistance of Resident Scholar Dr. Merrill Matthews.
Texas’ southern border is not its only border people cross fleeing an oppressive regime—California businesses are relocating to Texas because of absurd tax and labor regulations. IPI Resident Scholar Dr. Merrill Matthews runs through a few recent examples, with IPI President Tom Giovanetti contributing.
IPI Resident Scholar Dr. Merrill Matthews and President Tom Giovanetti discuss Florida Senator Rick Scott’s confusing position on whether Republicans should raise taxes on low and middle income earners, and his even more confusing defense of his position.
On a special episode recorded the day after President Biden’s 2022 State of the Union Address, IPI President Tom Giovanetti, Resident Scholar Dr. Merrill Matthews, and Director of Development & Events Addie Crimmins discuss the speech, its tone, its connection to political reality, and other various hot takes.
No, not fashion modelling or Instagram modelling, though we’re sure there are perils and pitfalls there, too. This episode is about using mathematical models and computers to try to predict outcomes. Riffing off of IPI’s experience and knowledge of economic modelling, IPI President Tom Giovanetti and Resident Scholar Dr. Merrill Matthews draw some conclusions about climate change modelling as well. Hint: Models are just not very accurate.